State whether the following statement is True or False.
Debit Balance of Pass Book represents overdrafts

True

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False

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Solution

The correct option is A True
True. Debit balance of pass book represents overdraft as we owe money to the bank. Pass book is a copy of the customer's account prepared by the bank with the bank's point of view. So when we owe money to the bank, we become a debtor (asset) for the bank. And, it shows debit balance in our pass book to depict the same.

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Similar questions

Q. State whether the following statement is True or False.
Bank balance as per pass book means debit balance as per pass book.

Q. State whether the following statement is True or False.
Bank balance as per cash book means debit balance as per cash book.

Q. State whether the following statement is True or False.
Overdraft as per cash book means debit balance as per cash book.

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Bank charges debited by Bank increase bank balance in the Pass Book.

State whether the following Statements are True or False.

1) Bank Reconciliation Statement is prepared by Bank.
2) Bank Reconciliation Statement is prepared at the end of stipulated period.
3) Overdraft facility is allowed to proprietors personal account
4) Debit balance of Pass Book represents overdraft
5) Credit balance of Bank column of Cash Book represents the balance as per Cash book.
6) Bank charges debited by Bank increases bank balance in the Pass Book.
7) Interest credited in Pass Book is an income to the Customer.
8) Bank Reconciliation Statement is prepared to detect the errors the takes place in accounting

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State whether the following statement is True or False.Debit Balance of Pass Book represents overdrafts

State whether the following statement is True or False.
Debit Balance of Pass Book represents overdrafts